In the past few weeks, bitcoin price has seen its most positive sentiment since the last cryptocurrency market crash of 2018. On Tuesday, April 9, bitcoin price surged by at least 15 percent kickstarting what many have called the next bitcoin bull run. Just before the bitcoin bull run and during this period, sentiment towards bitcoin became generally positive as Smartereum reported, most reputable crypto analysts were bullish about bitcoin and cryptocurrency. However, a cryptocurrency index and rating agency has questioned the bullish sentiment with a bearish bitcoin prediction.
Weiss Ratings Predict Bitcoin will Drop to $4,000 region
Weiss Ratings, a traditional asset ratings agency that also provides cryptocurrency analysis has predicted that bitcoin BTC price will drop to around $4,000 citing overbought conditions of the coin. The analysts at Weiss said their model pointed to a dip in bitcoin which has currently held its support above $5,000.
Weiss wrote:
“#BTC dips below $5K, but back up. Support is holding at $5K and its pulling other #cryptos up as well. The market is short term overbought, and our model has been pointing to a pullback to the 4,000’s. #crypto.”
Weiss Bitcoin Price Prediction has little supporting conditions
Weiss (in their tweet) did not explain how it came to its bearish conclusion except that their model showed that bitcoin is short term overbought. Bitcoin did go below 5,000 briefly declining from a yearly high of around $5,000. However, the most valuable cryptocurrency recovered to above $5,000 and has been trading sideways.
Like Weiss, some Bitcoin analysts see the correction as a pointer to lower BTC prices though opinion is greatly divided on this. On the optimistic divide, analysts are of the opinion that bitcoin is entering a bullish cycle that will culminate in all-time highs. This bitcoin price prediction is supported by similarities between the chart of 2015/2017 bitcoin bull run and the current bitcoin live charts. If the pattern is repeated, the bottom of around $3,100 seen last year would mean the effective end of the bitcoin winter.
Cryptocurrency Community Reject Weiss Bearish Bitcoin Price Prediction
Several cryptocurrency enthusiasts, traders, and analysts did not receive Weiss bitcoin price prediction as it contradicts several fundamental and technical indicators. As Smartereum reported, Tom Lee noted that bitcoin whales—investors who control a large portion of BTC—are accumulating bitcoin again.
Furthermore, the interest from institutional investors means more Institutional money will flow in to boost the cryptocurrency market. With Fidelity launching bitcoin-related investment products and Bakkt set to launch, bitcoin enthusiasts can only remain optimistic.
Weiss has a history of wrong cryptocurrency calls
Weiss claims to be the first rating form to introduce cryptocurrency ratings through Weiss crypto. What it lacks, however, is a stellar record of cryptocurrency predictions. One time the analysts at Weiss rating shocked the cryptocurrency community by predicting that Bitcoin (BTC) would lose 50% of its market share to Ethereum (ETH) within 5 years. Describing BTC as a “one-trick pony”, Weiss said ETH will surpass because it has more uses and superior technology. Not long after, Weiss turned back to say it expected an ETH-like project to dominate, not necessarily ETH.
Since then Weiss has tipped EOS and XRP to succeed in the short term and long term. In terms of price and market cap, both coins. Xrp retuned to 3rd position after displacing ETH for a while on the coinmarketcap chart. EOS, on the other hand, has dropped to the 6th position behind Litecoin and Bitcoin cash (BCH).
Riccardo Lopp is a writer specializing in Crypto, ethereum and whole blockchain ecosystem. His background is in economics and statistics.
